How to build business resilience
)
Posted: Wed 12th Jul 2023
In times of uncertainty, careful planning and preparation for both the expected and unexpected will go some way in helping your business to survive and grow. In other words, when it comes to business planning, always have a plan B.
The need to become leaner and greener is high on the agenda for many businesses looking to bounce back and start building resilience, where willingness to implement change, flexibility, and cost savings are also key requirements.
Lower your business costs
Typically, when looking to improve resilience, it's commonplace to first explore any potential opportunities to reduce costs.
Sometimes this involves reducing larger more substantial fixed costs all in one go – for example, by:
changing location
adopting more agile working practices, and/or
reducing headcount
In other instances, it may mean taking a more gradual approach, reducing lower, variable costs, which when accumulated over the year can result in significant savings.
Ideally, by producing a clear cash flow forecast or budget depicting how and where you can reduce costs, it'll also become clearer as to how best you can use any cost savings you've identified to promote better resilience and growth.
By creating savings in one area, you may be able to consider a small increase in spending in other areas such as marketing, which, in turn, helps to fuel demand.
Remember in times of need you also need some cash to fall back on, so spend in moderation and keep something in reserve for a rainy day.
Stay flexible
The need to remain flexible can apply to many different scenarios in business. For example, it might involve buying digital tools and resources that enable your workforce to work effectively from home. Or, the ability to adapt and change products and services in line with changing or newer demands.
One of the key advantages of having a small business is being able to respond fairly quickly to change.
Keep abreast of industry insights via trusted sources.
Explore new avenues and/or opportunities to deliver products and services.
Are there any routes to market you haven't tested previously?
Can you tweak your product or service accommodate new demand?
Is your geographic reach far and wide enough?
Are there any alternative suppliers who can provide a better, faster or more cost-effective service?
Talk to your workforce and identify ways that you can make improvements.
Remember that the UK government has set targets to become net zero by the year 2050, which means you'll likely need to lower your carbon footprint somewhat in the coming years. Focus on identifying ways to both improve your bottom line, and become leaner and greener for the future.
Market for growth
Nowadays, to stay competitive, businesses must be willing and able to predict and respond to changing consumer behaviour, ethics and values.
Research shows businesses that adopt a digital- and analytics-driven approach to managing productivity fare better than those that resist changes in technological advancement.
Using customer insights such as website analytics, CRM databases, sales receipts, social media interactions/engagements and customer feedback helps give you a deeper understanding of your key customer segments' needs and wants.
It also highlights the 'pain' customers would like solved, and how best you can pre-empt and accommodate changing demand.
Analyse your website
Invest time and effort into analysing your day-to-day data insights, on a weekly or monthly basis. You should already have a good idea of which products/services are in high demand.
With this in mind, take a look at your past performance, identify marketing messages that resonate well with your target audience and make them count. Repurpose, reuse, recycle.
Remember simply having a website is not enough to guarantee sales. You need to devote a lot of time and effort to start driving traffic to various products and pages. Make use of your experience and expertise in demonstrating why customers should choose you.
Promote thought leadership in your chosen field or industry to boost credibility via your website, social media pages, blog posts and industry publications. Where possible, collaborate with peers and other local businesses and/or charities to gain increased exposure.
Create a marketing plan that incorporates marketing activities throughout the year, taking into account any seasonal factors that affect your business. Prepare well in advance, whether that's to create videos, rebrand your website or simply schedule social media posts.
Get together with your team (if you have one) and thrash out marketing messages in line with your plans for the future. While there may be some amendments or additions along the way, thorough planning and preparation will save you time in the long run.
Ask for help
Even the most seasoned entrepreneur needs a little help from time to time. If you're in doubt about where to get started or how best to bounce back, there are numerous sources of free advice and support.
There's so much guidance available, whether you're:
seeking new ways to market your business
seeking a grant to make your premises greener
The important thing to remember is that you're not alone and help is always at hand.
Relevant resources
You might also like…
